Verimatrix Scores $5M
That gives Verimatrix about $20 million in total funding. It's also scored an additional investor: Cipio, an investment firm based in Munich.
Whether Verimatrix needs more depends on its game plan from here. The company should be cash-flow break-even early next year, says Steve Oetegenn, chief sales and marketing officer. But it's going to need more funding if it wants to expand to services beyond IPTV.
Right now, Verimatrix provides security software to go along with IPTV deployments. It's recently tapped into the cable market, too, offering its wares to analog cable providers that want to carry IPTV. (See Verimatrix Cuddles With Cable.)
But what if Verimatrix wants to do more? The company is considering a push into traditional cable and satellite broadcasts, environments "where there may or may not be a back channel" for IP traffic, Oetegenn says.
If that's the case, "we're going to be butting heads with some 800-pound gorillas," Oetegenn says. "We would most likely go back to the capital markets."
Verimatrix recently claimed its 3 millionth set-top-box license sold, after hitting the 2 million mark only in April. Shipments started way back in 2003, so Verimatrix execs get to show some honest hockey-stick graphs in their presentations.
— Craig Matsumoto, West Coast Editor, Light Reading